Assessing the risks to tesla´s market value: towards the share price

Abstract

The report evaluates the risks associated with owning Tesla’s stock to provide the investors with an informed investment recommendation. Firstly, Tesla may suffer from the competition undercutting its prices by marketing cheaper models. Secondly, the supply of essential battery components puts the penetration of electric vehicles in Europe and America under considerable pressure. Thirdly, the escalating inflation is scaring investors more than how it is impacting Tesla’s financials. Finally, before drawing a comparison between the long-term RONIC and the cost of capital, the report provides evidence on how Tesla can navigate the supply chain disruption better than its legacy competition.